Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average fell Tuesday as investors digested a plate full of earnings reports, the start of the two-day Federal Reserve meeting, and comments from President Trump that cast doubts on the success of U.S. trade talks with China.
- Tech giant Apple (AAPL) - Get Report is scheduled to report fiscal-third-quarter earnings after the market closes Tuesday. Apple is Real Money's Stock of the Day.
- Capital One Financial (COF) - Get Report fell after the bank said a hacker got access to the personal information of more than 100 million of its credit card customers and applicants.
Wall Street Overview
Stocks ended down Tuesday, but regained some ground lost in the morning session, as investors digested a plate full of earnings reports, the start of the two-day Federal Reserve meeting, and comments from President Donald Trump that cast doubts on the success of U.S. trade talks with China.
The Dow Jones Industrial Average, which reached a low of 151 points, ended down 23 points, or 0.09%, to 27,198, the S&P 500 slipped 0.26% and the Nasdaq dropped 0.24%.
The Federal Reserve is likely to announce Wednesday afternoon that it is cutting rates by 25 basis points, the first reduction in a decade.
Despite U.S. GDP growth of more than 2% and a strong jobs market, Chairman Jerome Powell and his Fed colleagues are up against a trade war between the U.S. and China that has hurt global economic growth and slowed domestic corporate profits, and inflation that remains below the central bank's target level.
Trade negotiations between the U.S. and China resumed Tuesday in Shanghai, as Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer met with a delegation led by China's economy czar, Vice Premier Liu He.
Trump inserted himself into the trade squabble via Twitter before the market opened Tuesday, complaining that "China is doing very badly, worst year in 27 - was supposed to start buying our agricultural product now - no signs that they are doing so."
"That is the problem with China, they just don't come through," Trump wrote. "Our Economy has become MUCH larger than the Chinese Economy is last 3 years."
Trump added that China should "should probably wait out our Election to see if we get one of the Democrat stiffs like Sleepy Joe," a sarcastic reference to former Vice President Joe Biden, who is seeking the Democratic Party's nomination for president.
Trump also said he was "disappointed" in the Federal Reserve. He has said the Dow would be 10,000 points higher if not for the U.S. central bank.
"The Fed has made all the wrong moves," Trump tweeted. "A small rate cut is not enough, but we will win anyway!"
- Apple Earnings -- 3 Keys to the Tech Behemoth's Report
- Need an iPhone Moment? Take a Bite Into the History of Apple
Shares of Capital One Financial (COF) - Get Report fell 5.9% to $91.22 after the financial services company said a hacker got access to the personal information of more than 100 million of its credit card customers and applicants.
Procter & Gamble (PG) - Get Report shares climbed 3.8% to $120.43 after the consumer products company posted stronger-than-expected fourth quarter earnings and said it would repurchase as much as $8 billion in company stock in the coming fiscal year.
Shares of Under Armour (UA) - Get Report sank 13.7% to $21.05 after the performance apparel company issued softer 2019 earnings guidance and North American sales for the sportswear group continue to decline.
- BYND Expectations? A Look at the History of Beyond Meat
- Dunkin' Asked Me to Try the Beyond Sausage Breakfast Sandwich, So I Did
In economic news, prices on consumer purchases, excluding food and energy, rose by 0.2% in June, leaving them up 1.4% over the past 12 months, the Commerce Department's Bureau of Economic Analysis said. The annual pace is below the Fed's target of 2%.
Save 76% with our Summer Break Sale. Subscribe to our premium site Real Money and become a smarter investor! Click here today to sign up!